Beyond the Footsie: Tuesday close

SMALL caps closed lower, dragged down by a weak broader market as concerns over record high oil prices and the impact on corporate profits and the economy continued to take their toll.

The FTSE Small-Cap index ended the day 12.4 points lower at 2,593.5, while the FTSE 100 index closed 37.6 points lower at 4,647.9.

James R Knowles shares dropped 3 1/2p to 32p after the company disclosed a sharp fall in full-year profits and omitted the final dividend.

Goldstone Resources also remained on offer, slipping 2p to 26p after news that the company has dropped its drilling contractor on the Roraima gold mining project in Guyana because of slow progress and has taken the drilling back in-house.

Still on the downside, Imperial Energy Corporation closed 3 1/2p lower at 220p, as traders reacted to the placing of 12.5m new shares at 160p to raise £20m.

Among the gainers, Mondas added 3 1/2p to 20p after announcing that it has agreed to a £800,000 contract with Brewin Dolphin to upgrade its Replica CAPS software.

Warthog was a late gainer, climbing 0.12p to 0.66p after the games developer announced a computer game partnership with Tiger Telematics.

European Diamonds also made headway, adding 7 1/2p to 49 1/2p after the company revealed it has found more diamonds at the Lahtojoki mine in Finland.

Image Scan Holdings also edged 1p higher to 12 1/2p after news the company has won an order worth £90,000 from its sales and marketing partner Rapiscan Security Products.

Buyers also came for Microgen, 3 1/2p better at 57 1/2p, after the UK IT services group said full-year results from continuing operations should be ahead of expectations. It added that the recent acquisition of AFA Systems is proceeding well.

Kewill Systems shares were on buyers' shopping lists after the UK software group said it will report much improved results for its fiscal first half, in line with internal targets.

For the six months to Sept 30, 2004, Kewill said its pre-tax and operating profits are likely to be 'significantly' ahead of last year after winning a number of large contracts for its supply chain software in the US.

Kewill shares added 1 3/4p to 65 1/4p.

Ten Alps Communications were also in demand, climbing 3 1/2p to 44 1/2p after the media group said its TV and radio businesses have shown significant progress recently and that this is likely to be reflected in the results for the second half of the year to March and beyond.